News
Industry Update – April 2026
Attention: Shipping Manager
Middle East Conflict
As previously noted, we are monitoring developments from Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) on the ongoing conflict in the Middle East.
The situation has resulted in severed disruption to global air cargo and containerized sea cargo, with flow-on consequences for Australian supply chains.
While some regional ports, bookings, and limited flight operations have resumed, the overall operating environment remains highly unstable.
US Tariff Developments
We have received notice from Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) of developments in the United States concerning tariff measures.
On 20 February 2026, the Supreme Court of the United States ruled that the statutory authority relied upon by the Trump Administration to impose a series of tariffs in 2025 was invalid.
The tariffs had been introduced under powers claimed pursuant to the International Emergency Economic Powers Act (IEEPA). That legislation allows a US President to regulate commerce following the declaration of a national emergency to address an “unusual and extraordinary threat” originating substantially outside the United States.
As anticipated, the White House responded immediately by issuing new Executive Orders and a Presidential Proclamation, relying on alternative statutory mechanisms to reinstate and restructure tariff measures.
This included:
- Standing down certain previously imposed tariffs
- Maintaining suspension of duty-free de minimis treatment
- Introducing a temporary import surcharge of 10%, subsequently announced to increase to 15% by President Trump
While the tariffs apply to imports into the US, Australian exporters and logistics providers should anticipate:
- Immediate cost increases for US importers
- Contractual pressure in US supply chains
- Possible diversion of global trade flows
- Shipping line redeployments toward higher-yield markets (as history shows)
When tariff settings shift abruptly, demand spikes, vessel capacity tightens, and freight rates may move quickly.
(Source: Freight & Trade Alliance)
General Rate Increase from North East Asia to Australia
We received notifications this month from a number of shipping lines in regards to a General Rate Increase (GRI) from Asia to Australia and New Zealand, details as follows:
This will come into effect from 1 April 2026, affecting North East and South East Asia to Australia and New Zealand.
USD 300/20’
USD 600/40’
LCL will increase accordingly.
Due to the current global situation, we believe these increases may not eventuate. However, because shipping lines have announced them, we want to keep you informed.
If you need further clarification on pricing on these trade lanes, please contact your sales representative.
VICT Contract Extension
We have received notice from Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) that Victoria International Container Terminal (VICT) securing a 26-year extension to its contract to operate and manage the Webb Dock East terminal at the Port of Melbourne.
The extension, announced last month, will see VICT continue operations at Webb Dock East until 2066, extending the original expiry date of 2040 at Australia’s largest general cargo and container port.
(Freight & Trade Alliance)
Australia-European Union Free Trade Agreement
We have received notice from Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) of significant news from the Prime Minister’s office, with the Australia-European Union Free Trade Agreement (EU-FTA) now finalised, following more than eight years of negotiations.
The EU is Australia’s largest trading partner without an FTA, and this agreement is expected to increase Australia’s FTA coverage from approximately 78% to 88% of total trade. It also supports broader trade diversification efforts and reinforces Australia’s position in rules-based global trade.
The agreement will now move through ratification processes in both Australia and the European Union, noting that EU approval involves multiple legislative stages across member institutions. Entry into force is expected in approximately 18–24 months, subject to these processes.
(Source: Freight & Trade Alliance)
Destination Empty Container Park Increase:
Destination Empty Container Park surcharge has increased for all ports, effective immediately.
Updated surcharges given below:
Sydney Empty Container Park surcharge = AUD 335 per container
Melbourne Empty Container Park surcharge = AUD 250 per container
Brisbane Empty Container Park surcharge = AUD 260 per container
Adelaide Empty Container Park surcharge = AUD 165 per container
Fremantle Empty Container Park surcharge = AUD 175 per container
Destination Fuel Surcharge Increase:
The situation in the Middle East is causing significant disruption to international energy markets, directly affecting Australian domestic freight costs through fuel pricing, with the conflict likely to continue for at least a few more weeks.
As container transport logistics in Australia is reliant on diesel fuel, rising diesel prices affect the entire container freight supply chain.
At this stage, we are receiving changing fuel notices hourly in some cases, which highlights the fluidity of the situation. Due to this instability, frequent monitoring and adjustment is necessary.
Please note that any increasing fuel surcharges do not represent an increase in margin for our business, but reflect the rapidly rising costs being passed through by our suppliers, and it is necessary for us to ensure our operating costs are covered so we can continue to move cargo to its destination and maintain efficient service for our customers.
With the Government announcing a 3-month excise reduction, we are beginning to see reductions come through on local trucking, and these will be passed on for all states. Note that if you have a regional delivery, the fuel surcharge will be higher than metro as per usual.
As fuel price volatility continues to rise, Destination Fuel Surcharge has changed in all ports. Updated surcharges as of today are given below:
Sydney Fuel surcharge = 46%
Melbourne Fuel surcharge = 44%
Brisbane Fuel surcharge = 57%
Adelaide Fuel surcharge = 53%
Fremantle Fuel surcharge = 44%
The fuel surcharges will continue to be applied based on the applicable rate during the period in which the transport movement takes place. Where services span multiple days, the surcharge may be adjusted to reflect the rate in effect on each day of the movement.
Given the volatility of the price of fuel, we will continue to assess these surcharges weekly and keep you updated. However, if you would like to clarify the latest updates, please contact your sales representative.
We understand the pace of these changes is challenging, and we appreciate your understanding while we navigate this critical and uncertain global economic period/exceptional market conditions.
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Regards,
